There has never been a day in British racing when a scheduled programme has been voluntarily called off, until now. Wednesday’s strike, when meetings at Lingfield, Carlisle, Uttoxeter and Kempton were due to be staged, is a sign of how seriously the sport views the threat to its finances from a government proposal to harmonise betting and gaming duty.
The proposal would align the rate of duty on betting profits with that on fixed-margin casino products such as online slots. Martin Cruddace, chief executive of Arena Racing Company, has described it as an “existential threat” to Britain’s second-biggest spectator sport. Currently, betting duty is 15% of gross profits, while gaming duty is 21%; harmonisation could raise betting duty to 25%.
The distinction between betting and gaming dates back to the late 1700s and has endured in taxation. Gaming generates guaranteed profits, while betting profits are less certain and require more investment. The lower duty on betting is an incentive for operators to maintain and grow their betting business. Without it, racing, which relies on a share of betting revenue, could face a slow decline.
Wednesday’s strike, alongside an event near Parliament, is the sport’s chance to send a message before Chancellor Rachel Reeves delivers the budget on 26 November. While some argue for a more stridently anti-harmonisation stance, the National Trainers’ Federation has offered public support for a resolution that accepts a small rise in betting duty alongside a larger hike in gaming duty.
